EU: Trade Comm Told USTR 50% Steel Tariff "Does Not Help Negotiations"
EU Trade Commissioner Maros Sefcovic speaking at a press briefing at the OECD trade ministerial in Paris. Says that the main message at the talks "is strong support for multi-lateral ties [and a] strong rules-based system." In a similar line to that taken earlier, Sefcovic says that he had a "substantive and constructive discussion" with USTR Jamieson Greer, and that these talks will continue. On the escalation in US steel tariffs to 50% (calls it a "surprise"), Sefcovic he said he discussed the matter with Greer and that he "told him we strongly regret it, and it does not help negotiations." Says talks with the US "are covering all the issues". Sefcovic: "We clearly have the same challenges as the US on steel, which is global overcapacity."
- Sefcovic: "I still believe in negotiations with the US [and] believe we can achieve a positive result, but [we] are ready to defend our interests." Says that discussions on EU countermeasures are ongoing, "We are following a rules-based procedure".
- On other nations:
- China: Sefcovic says he had a "focused" meeting with Chinese Commerce Minister Wang Wentao. Says "we are working hard to address issues and prepare for the July EU-China summit."
- India: Says that talks focused on agriculture will allow the trade negotiation process to advance further.
- Australia: Sefcovic says there has been "re-engagement in our free trade agreement negotiations" and he "believes we can achieve substantial progress this year."
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EQUITIES: EU Bank put fly
SX7E (19th Sep) 160/155/150p fly, bought for 0.20 in 6k.
OUTLOOK: Price Signal Summary - Bear Threat In Oil Futures Still Present
- On the commodity front, Gold is trading higher today. Recent weakness appears to have been a correction. The yellow metal breached the 20-day EMA. A continuation lower would highlight a deeper retracement and open the 50-day EMA, at 3115.11 - a key support. The primary trend direction remains up. A resumption of gains would refocus attention on $3500.1, the Apr 22 high and bull trigger. Clearance of this level resumes the uptrend.
- In the oil space, a medium-term bearish trend in WTI futures remains intact and last week’s sell-off reinforces this theme. The move down signals the end of the correction between Apr 9 - 23. The correction allowed an oversold trend condition to unwind. Attention is on $54.67, the Apr 9 low and a bear trigger. Clearance of this level would resume the downtrend and open $53.72, a 2.236 projection of the Feb 20 - Mar 5 - Apr 2 price swing. Resistance to watch is $64.61, the 50-day EMA. Initial resistance is $61.94, the 20-day EMA.
US 10YR FUTURE TECHS: (M5) Support Remains Exposed
- RES 4: 113-22 1.382 proj of the Apr 11 - 16 - 22 price swing
- RES 3: 113-04 76.4% retracement of the Apr 7 - 11 bear leg
- RES 2: 112-20+ High MAy 1 and key new-term resistance
- RES 1: 112-01+ High Apr 2
- PRICE: 111-07+ @ 11:36 BST May 5
- SUP 1: 111-02 Low Mar 2 / 50-dma
- SUP 2: 110-30+ 50-day EMA
- SUP 3: 110-16+/109-08 Low Apr 22 / 11 and the bear trigger
- SUP 4: 108-26+ 76.4% retracement of the Jan 13 - Apr 7 bull cycle
A sharp reversal lower in Treasury futures last week undermines the recent bull cycle. The contract has breached the 20-day EMA, and sights are on support at the 50-day EMA, at 110-30+. A clear breach of this average would strengthen a bearish threat and expose 110-16+, the Apr 22 low. For bulls, price needs to trade above key short-term resistance at 112-20+, the May 1 high, to reinstate a bullish theme.
